The Bangladesh Garment Manufacturers and Exporters Association (BGMEA) has urged the government to extend the deadline for loan repayments from three months to six months, a move that could potentially save 500 to 600 readymade garment (RMG) factories from classification as non-performing loans. The appeal was made during a meeting with Special Assistant to the Chief Adviser Anisuzzaman Chowdhury at the planning ministry.
BGMEA President Mahmud Hasan Khan highlighted that the current policy, which reduced the repayment period from nine months to three months, has placed significant financial strain on factory owners who are unable to meet the tighter deadlines. He called on the interim government to reconsider Bangladesh Bank’s loan classification policies to ease pressure on entrepreneurs.
During the meeting, the delegation also raised concerns over reduced cash incentives for garment exports, gas supply shortages, customs inefficiencies, and difficulties in renewing trade licenses and import-export codes. Khan criticized the recent cut in cash incentives from 1 per cent to 0.3 per cent for regular schemes and from 4 per cent to 1.5 per cent for alternative schemes, deeming it untimely and detrimental to the industry’s competitiveness.
The BGMEA proposed reviving and extending the pre-shipment credit refinancing scheme until 2030 to bolster liquidity for exporters. They also suggested establishing a ‘forced’ crisis fund linked to export revenues to disburse wages during emergencies.
In terms of infrastructure, the industry leaders called for increased efficiency at Chattogram Port, streamlining customs procedures, and reducing lead times amid global trade challenges. They emphasized the urgent need to extract gas from newly-discovered fields in Bhola and increase LNG imports to address the energy crisis impacting factories.
Additionally, the delegation advocated for renewable energy initiatives, including installing solar power plants on unused government land and water bodies through public-private partnerships. They also sought support for reviving the abandoned garments village project in Munshiganj and establishing a dedicated industrial zone for small and medium-sized factories in Chattogram.
Acknowledging these issues, Anisuzzaman Chowdhury assured the BGMEA of continued government support to strengthen Bangladesh’s vital export sector.
